DOGE Rallying Around Musk, Ethereum Upgrade Happening Soon: How Will Bitcoin Evolve, and Does It Need To?
With DOGE and Ethereum making steps to up their valuation, Bitcoin is in danger of being overtaken. Click here to find out how and if they need to evolve.
The world is constantly changing. With each spin, there is a new upgrade, a new technological advancement, a game-changing development assertively set in motion. By the time a single orbit is completed, the planet we live on is not the same one as it was before.
These technological advancements can be seen aplenty in the financial landscape. Since Bitcoin’s inception back in 2008, the world has seen a tonal shift toward online, digitalised trading. Looking at Bitcoin’s valuation today, it is still billions of dollars ahead of its rival counterparts. But that is not to say there haven’t been issues along the road.
The Proof Of Work Strategy
Currently, the proof of work strategy that Bitcoin pioneered has been recognised to be energy-intensive. As well as this, there has been a lack of government regulations. This means that, while transactions may be faster without the need for a middleman, none of them will come with protection and all are irreversible, making them more susceptible to hacking and scams. This has all led to consumers and companies to watch from the sidelines, and see what the reactions are.
So, while Bitcoin remains the strongest cryptocurrency, there are points on which commentators, investors, and observers expect bitcoin to, potentially, evolve. This is especially true when taking into account its counterparts. After all, with each recent orbit, there have been shifts in the cryptocurrency landscape which have begun to set Bitcoins rivals apart.
DOGE Is Rallying Behind Musk
Looking specifically at DOGE. Originating as a joke between creators Billy Makus and Jackson Palmer, this is a satirical cryptocurrency which happened to reach a market capitalization of $85 billion just last year. Since its beginnings, DOGE has also been pushed into the stratosphere by visionary billionaire Elon Musk’s endorsement. In January 2022, Musk announced on Twitter that Tesla merchandise would be buyable with Dogecoin, sending the valuation upwards by 14%. Later in 2022, when Musk bought Twitter for a price of $44 billion, DOGE’s valuation rose once again by a further 40%.
With DOGE rallying behind Musk, their valuation is only set to increase further. With every movement Musk makes, Dogecoin is set to raise or lower the coin's price accordingly. With his growing popularity and integration onto the world stage, it is fair to say that the future of DOGE could be bright. So long as their spiritual leader makes the right impressions on those who eventually invest in it.
Ethereum Is Also Looking To Increase Its Value
Aside from this, the cryptocurrency Ethereum has arguably made an even bigger (and certainly more integral) leap in their own valuation. While Bitcoin and Ethereum have been running on a proof of work system, this year Ethereum is planning its leap to Ethereum 2.0, which introduces the new proof of stake. With POS, Ethereum is set to scrap the mining strategy; instead, allowing users to become validators. By putting up to 32 ETH into the system, validators will be chosen at random to verify a block, therefore cutting out the massive computing strain which comes with a collection of miners attempting to validate the hash.
Not only is this more user friendly, seeing as anyone can get chosen to validate and earn more coins, but it will also essentially solve the energy problem which has coexisted with cryptocurrency for over ten years. There will be no need for excessive hardware, power or wastage, which will ultimately drive more people towards investing in Ethereum and similarly encourage countries to adopt crypto as legal tender.
Bitcoin Will Need To Adapt To Overcome
While Ethereum’s valuation is in second place, it is not outside the question that they will soon overtake Bitcoin to become the world’s leading cryptocurrency. In this way, Bitcoin will undoubtedly have to put some tactics in place to keep their ascendancy. Although without a POS strategy in place, it is hard to see how they are going to achieve this. Unless the concerns about POS’s security and efficiency come to fruition, then it is likely that we will see Ethereum overtake Bitcoin sometime in the next decade. If POS will truly put to bed the energy issue, then the only way Bitcoin can stay afloat is through a change in code, bringing it into the future with a POS system which sets it side-by-side with Ethereum.
As mentioned before, with every new orbit of the sun comes a new innovation which can change the game. Both DOGE and Ethereum are taking steps to up their valuation and, unless Bitcoin intends to spin off the axis, it is important that they do the same.